LIFO | | FIFO |
| higher COGS | | lower COGS |
| lower taxes | | higher taxes |
| lower net income | | higher net income |
| lower inventory balances | | higher inventory balances |
| higher cash flows (less tax paid out) | | lower cash flows (more tax paid out) |
| lower net and gross margins | | higher net and gross margins |
| lower current ratio | | higher current ratio |
| higher inventory turnover | | lower inventory turnover |
| DA and DE higher | | DA and DE lower |
Under IFRS the permissible cost flow methods are:
- Specific Identification
- FIFO
- Weighted average cost